QUESTION 24 HW 1

Healthy Foods Inc. sells 50-pound bags of grapes to the military for $25 a bag. The fixed costs of this operation are $130,000, while the variable costs of grapes are $0.20 per pound. a. What is the break-even point in bags? (Round your answer to 2 decimal places.) Break-even point 8,666.67 bags b. Calculate the profit or loss (EBIT) on 12,000 bags and on 34,000 bags. Bags Profit/Loss Amount 12,000 34,000c. What is the degree of operating leverage at 30,000 bags and at 34,000 bags? (Round your answers to 2 decimal places.) d. If Healthy Foods has an annual interest expense of $11,000, calculate the degree of nancial leverage at both 30,000 and 34,000 bags. (Round your answers to 2 decimal places.) e. What is the degree of combined leverage at both 30,000 and 34.000 bags? (Round your answers to 2 decimal places.)